Stockland continues to grow its Logistics and Business Parks portfolio, completing three separate transactions to acquire two properties in Sydney at Warwick Farm and Botany and a third property at Laverton North in Melbourne for a total investment of $66.5 million.
John Schroder, Group Executive and CEO Commercial Property at Stockland said: “The three properties are in high growth corridors close to each respective city’s major port and container handling facilities. The three properties are all well serviced by major road and rail infrastructure and each property offers excellent flexibility and potential for future improvement.”
Stockland has acquired an 11.5 hectare industrial zoned greenfield development site for $17.2 million from the Australian Turf Club (ATC) at Warwick Farm in South West Sydney. Stockland is planning to develop a multi-warehouse, multi-tenant industrial estate, comprising around 52,000 square metres of GLA. Development is planned to commence later this year.
The Warwick Farm property is located in the heart of the South West Sydney industrial precinct and within four kilometres of the Moorebank Intermodal Terminal and Industrial Area. The site offers frontage to Governor Macquarie Drive and is also located close to the Hume Highway, M5 and M7 motorways and near the Southern Sydney Freight Line and future Badgerys Creek Airport.
Tony D’Addona, General Manager, Logistics and Business Parks at Stockland, said: “The site at Warwick Farm provides us with excellent exposure to Sydney’s rapidly developing south west corridor. This area will benefit from major freight transport and logistics infrastructure projects, including the intermodal terminal, new airport and future motorway and rail upgrades.”
Stockland has also acquired a 1.5 hectare industrial property in Botany for $20.3 million in an off-market transaction. The property comprises a warehouse of approximately 7,900 square metres and an adjoining 1,650 square metre office. The property offers a passing initial yield (FFO) of 7.6 per cent, pre-acquisition costs.
“At Botany, land rezoning from industrial to high density residential and mixed use is creating a distinct scarcity of high-quality industrial premises,” said Mr D’Addona. “The area’s gentrification is precipitating a sharp appreciation in land values and creating a shortage of traditional industrial stock for sale or rent, increasing face rents and yields.”
In Melbourne, Stockland acquired a 9.8 hectare holding at 72 – 76 Cherry Lane, Laverton North,for $29.0 million in a sale and leaseback from Toll Group in an off -market transaction. The facility comprises a 20,500 square metre warehouse and 4.5 hectares of container-rated hardstand offering a passing initial yield (FFO) of 7.8 per cent, pre-acquisition costs.
Laverton North is one of Melbourne’s premier industrial locations. The Cherry Lane facility is located approximately 12 kilometres west of the Port of Melbourne and 16 kilometres from the Melbourne CBD. It is located very close to the Princes Highway, Westgate Freeway and Western Ring Road, ensuring excellent access to all areas of Melbourne and major interstate transport routes to the west and north of the city.
“The property at Laverton North is located in one of Melbourne’s prime industrial areas,” said Mr D’Addona. “The facility includes a modern, high clearance warehouse with a combination of at grade and elevated loading docks. Located on a corner lot with dual street frontages, the property provides excellent versatility for future development and improvement.”
Stockland Managing Director and CEO, Mark Steinert, said: “These three high-quality acquisitions support our strategy to profitably increase the size and scale of our Logistics and Business Parks portfolio, which we’ve grown from $1.3 billion at the end of FY13 to approximately $1.67 billion today.”
Stockland (ASX: SGP) was founded in 1952 and has grown to become Australia’s largest diversified property group – owning, developing and managing a large portfolio of shopping centres, residential communities, logistic centres, business parks, office assets and retirement living villages. Stockland is rated as one of the most sustainable real estate companies in the world by the Dow Jones Sustainability World Index (DJSI). Stockland is also an Employer of Choice for Gender Equality, as recognised by the Workplace Gender Equality Agency.
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